Correlation Between TechPrecision Common and Gain Therapeutics

Can any of the company-specific risk be diversified away by investing in both TechPrecision Common and Gain Therapeutics at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining TechPrecision Common and Gain Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between TechPrecision Common and Gain Therapeutics, you can compare the effects of market volatilities on TechPrecision Common and Gain Therapeutics and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in TechPrecision Common with a short position of Gain Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of TechPrecision Common and Gain Therapeutics.

Diversification Opportunities for TechPrecision Common and Gain Therapeutics

-0.48

Correlation Coefficient

TechPrecision Common  Gain Therapeutics

Very good diversification

The 3 months correlation between TechPrecision and Gain is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding TechPrecision Common and Gain Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gain Therapeutics and TechPrecision Common is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on TechPrecision Common are associated (or correlated) with Gain Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gain Therapeutics has no effect on the direction of TechPrecision Common i.e., TechPrecision Common and Gain Therapeutics go up and down completely randomly.

Pair Corralation between TechPrecision Common and Gain Therapeutics

Given the investment horizon of 90 days TechPrecision Common is expected to generate 1.14 times more return on investment than Gain Therapeutics. However, TechPrecision Common is 1.14 times more volatile than Gain Therapeutics. It trades about 0.18 of its potential returns per unit of risk. Gain Therapeutics is currently generating about -0.1 per unit of risk. If you would invest  295.00  in TechPrecision Common on May 5, 2025 and sell it today you would earn a total of  186.00  from holding TechPrecision Common or generate 63.05% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

TechPrecision Common  vs.  Gain Therapeutics

TechPrecision Common

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in TechPrecision Common are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile fundamental indicators, TechPrecision Common unveiled solid returns over the last few months and may actually be approaching a breakup point.

Gain Therapeutics

Risk-Adjusted Performance

Very Weak

Over the last 90 days Gain Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with TechPrecision Common and Gain Therapeutics

The main advantage of trading using opposite TechPrecision Common and Gain Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TechPrecision Common position performs unexpectedly, Gain Therapeutics can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Gain Therapeutics will offset losses from the drop in Gain Therapeutics' long position.

The idea behind TechPrecision Common and Gain Therapeutics pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.